While our folks’ advices on money handling were great 20 or 30 years ago, it is not exactly wise to apply them nowadays, especially with a drastic change in our economy. So as you get your first ever pay and start managing your own finances, it is important for you to be aware that not everything you hear will be a good move for you to try.

Among the many reprimands you will usually hear from people older than you is to never use a credit card as it equals to indebtment and will cause you with more problems in the future than you can imagine. In reality, having a credit card will mostly depend on your discipline. Cutting of your card is only applicable to those already close to bankruptcy. If you know how to control yourself and can manage your expenses well, having a credit card may actually be beneficial as it offers rewards and boosts your credit history, allowing you to avail for leases and bank loans later on.

Another usual recommendation which many millennials still practice up to now, thinking that this is a sensible idea is putting all their funds in the bank. Sure, back in the day this strategy will let you gain a decent amount of return but as of present, the bank is not exactly the best place to store up your hard-earned cash as savings account may cause you to lose your money with maintenance fees and low interest that cannot keep pace with inflation. You may have some of your money here, but the majority of your fortune should be kept somewhere else.

You don’t need to settle for food you don’t even want as well just to save every penny you can. In the long run, these little tucked up money will not even comprise half of what you are going to have. Yes, excessive spending is never advisable, but it won’t hurt for you to buy that scrumptious lunch once in awhile. What you need to focus on is broadening your capabilities to be able to acquire a higher earning which will be more of use instead of those bundles you keep trying to save every month.

Plus, avoid cringing every time you hear the word debt. Having debts is not the worst thing in terms of financial matters; in fact, not all debts are bad as it makes a lot of sense if you have one. For example, when it comes to loans--let’s say you are financing a car loan, you are able to gradually pay for what you want while having the rest of your money to allocate for your other needs.

Lastly, although the urge to work round the clock to pay off your student loans is tempting, do not prioritize this over your other necessary expenses. Learn to diversify, or allot a portion for everything you want to use you cash for. Also, your early twenties is the perfect time for you to start an investment or set aside funds for your retirement.

Yes, it is easy to listen to others especially when you are a newbie in the financial world, but it vital as well that you decide based on what will be appropriate for your current situation and do your own research.